VA programs : Amazing Benefits Often Going Unused

VA programs are the most under-served loan product on the secondary market.  Let’s put this in perspective: In 2022, according to the US Census Bureau data, there are 19 million veterans age 18 and older in the US with about 13 million age 50 and older.  VA recorded 1,441,745 loans insured in 2021.  There are a lot of Veterans eligible for VA loans that are not using their benefit. 

Often the reason they don’t use their benefit, is they simply don’t know where to go for a VA loan. At Planted Local Lending we want to make sure we are putting the word out there that we WANT TO HELP VETERANS with home ownership! 

Why VA?

  • 100% financing of the purchase price
  • No Monthly Mortgage Insurance
  • Funding Fee is based on First Time Use and Subsequent use – if unsure of the Funding Fee amount, google VA Funding Fee Chart!
  • 6% seller concessions are allowed, but it must be split up on the contract as 4% towards closing costs and 2% towards discount points
  • Credit score allowed down to 580
  • Manual underwriting allowed down to 620 (exceptions to this allowed with compensating factors!)
  • Residual Income must be met
  • Flexible credit guidelines
  • Common sense income guidelines
  • Full Entitlement needed for loans less than 144,000.  Partial or full entitlement allowed for loans above 144,000.  Loan must have 25% guarantee to meet VA insuring requirements.  (I can help with loan calculation to make sure entitlement is adequate!)
  • Low Rates – VA only allows 1% origination
  • 41% Debt To Income ratio limits, unless AUS Approve/Eligible approves higher.  Up to 50% is not uncommon

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.